Random fact
Petrol is $7.15572 a gallon here. :)
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Does that make it ok for U.S. oil companies to reap profits bigger than they ever have in the entire history of the U.S., and STILL have gas prices climbing?
It depends on the why they're making such profits. If it's because people are buying more gas than ever, sure. That makes it okay. It's the stupid people's fault for buying SUVs and Hummers and other such ridiculous cars. If it's because they're raising gas prices just so they can have a bigger profit margin, probably not.
One of the industries I cover is the energy industry. The answer to this is quite complicated, but the gist of it is, at least according to the energy companies, that the increase in price is not to further spike their bottom line. Rather, it's a question of supply and demand. You can get some interesting info directly on their sites - try chevron.com or bp.com
But to carry that further, one needs to question the idea of applying a full free market model to an industry that is, in part supported and subsidised by the government.
There's something in error when a company that enjoys such protections because of the strategic importance of it's product chooses to ignore government control while still enjoying the benefits of said alliance. And, to carry that further, given that the economic keystones of the United States are a few key industries which are in turn heavily supported subisidised and supported by the government, can the rules of the free market be said to even apply?
Skyrocketing prices from supply in demand are supposed to be checked by competition. This is not happening. The competition is one big happy profitable family.
We should ask James about the whole supply and demand aspect of this stuff. He's the finance/economics man.
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Beth Ballingall
food lover : world traveller : gamer : New Yorker : twenty-something : former Londoner : handbag lover : erstwhile soprano : geek
Ouch! I won't complain to YOU about prices.